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Please decipher commercial speak re PMT

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Please decipher commercial speak re PMT

Hello James and crew, Could you please convert the update from Patriot Metals dated 5th August into something I can understand. Closing $109m strategic investment with Albemarle Corp. ALBI now owns approximately 4.9% of PMT common shares on a fully-diluted in-the-money basis or 6.4% on a non-diluted issued and outstanding basis. I assume its not good as the share price went down 3.81%. What does it really mean. Thanks Alan


Hi Alan,

Global battery metals giant Albemarle (ALB US) took a $C109m stake in Patriot Battery Metals (PMT), which has it’s shares listed in both Australia and Canada. The stake was taken in a private placement, a deal only available to Albemarle where Patriot Metals offered new shares to Albemarle equivalent to 6.4% of shares on issue pre-dilution, or 4.9% post-dilution (issuance of the new shares).

There are pros and cons to the private placement for PMT shareholders. It dilutes the value of shares given new shares are issued. However it raises much needed capital for PMT which is looking to develop the Corvette Lithium asset in Canada. The two companies also signed an agreement to work on partnership opportunities, Patriot gaining a key development and capital partner which significantly de-risks the outlook.

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Patriot Battery Metals Inc (PMT)
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